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FBS College Athletes
Contract-Based Financing for FBS College Athletes
Contract-based financing is a specialized type of financing that allows a borrower to secure funds using a contract as the basis for a loan. For FBS College Athletes, this is often very beneficial as contract-based financing is not dependent on the borrower having a high personal credit score, income history, or even collateral such as a house. The amount a FBS College Athlete can borrow using a contract loan is determined by the type of contract, size of the contract, and the number of years remaining on the contract. With a revenue share or NIL contract in-place, a player can access a percentage of the remaining guaranteed dollars on the contract.
What Can a FBS College Athlete Use a Contract Loan for?
FBS College Athlete contract advances are excellent options for players who need funds for various purposes such as:
What is the Process to Applying for an FBS College Athlete Contract Loan?
AApplying for an FBS College Athlete Contract Advance is a simple and straightforward process. The first step is to submit a loan request which you can do on our Request Financing page. Once the request has been submitted, potential borrowers will go through the process outlined below:
Pre-Qualification
Upon receiving a loan request, the Sure Sports credit team will review the athlete’s contract and request, to determine eligibility. If an athlete’s contract qualifies him/her for a loan, then terms are provided within 1-2 business days.
Proposed Terms Issued
After accepting the loan terms and submitting a signed term sheet along with a credit and background authorization form, Sure Sports will conduct a credit check on the borrower within 1-2 business days.
Client Signs the Term Sheet
After accepting the loan terms and submitting a signed term sheet along with a credit and background authorization form, Sure Sports will conduct a credit check on the borrower within 1-2 business days.
Application Process
The required documents for loan application will be requested within 1-2 business days after receiving the signed term sheet.
Underwriting
The length of the underwriting process is determined by the complexity of the loan and can be as little as 3-5 business days and up to two weeks in some cases.
Credit Decision
At the conclusion of the underwriting process, your loan will either be approved with final terms, declined, or receive a request for additional information.
Loan Documents Drafted
Once final approval has been provided, loan documents are drafted which may take 1-2 business days.
Closing & Funding
The timeline from receiving a full file to closing/funding ranges from 1 week for private-line loans to 2-4 weeks for bank-line loans.
Contract-Based Financing Repayment Terms for FBS College Athletes
Unlike traditional loan options, NIL financing or revenue share contract financing provides FBS College Athletes with flexibility when it comes to loan repayment. The repayment of a contract advance will be coterminous with the player’s contract, meaning the amount of time a FBS College Athlete has to repay the loan will match the amount of time left of the player’s contract with the school.
Sure Sports will always customize a FBS College Athlete’s loan repayment schedule so the payments align with the contractual payments.
Benefits of Contract-Based Financing With Sure Sports
Most traditional banks are reluctant to provide an unsecured contract-based loan to FBS College Athletes, leaving these players with few options but to take out high-interest rate loans from private lending companies or sell a percentage of their future earnings to meet current obligations.
Working with Sure Sports, FBS College Athletes have access to the speed and ease of working with private lenders where funds are often available in as little as 48 hours following approval. In addition, thanks to Sure Sports relationships with bank partners across the country, FBS College Athletes are also able to qualify for unsecured contract-based loans with traditional banks. This access is unique, and due in part to Sure Sports’ deep understanding of the sports and banking industries, as well as relationships in these industries that span decades. The flexibility to provide both private and bank loans to FBS College Athletes truly sets Sure Sports apart from other companies in this space.
When a FBS College Athletes is looking for capital, regardless of the use of funds, discretion is extremely important. Confidentiality is at the forefront of every Sure Sports loan request. In addition, FBS College Athletes or their advisors will work exclusively with Sure Sports from the initial request until the loan is paid off. This ensures a seamless experience for FBS College Athletes and their advisors throughout the entire process.
FBS College Athlete Contract-Based Financing
Case Study
Sure Sports received a request from the business manager of an FBS College Athlete looking to secure funding to make some off-field investments.
The player’s have very little credit or income history, failing to meet standard requirements from traditional banks.
Sure Sports proposed a contract-based loan as his credit score was not needed to qualify, as the player had significant NIL contractual income.
Sure Sports was able to leverage his NIL contract to provide him with a contract-based loan to capitalize on the opportunities he was presented with to jumpstart his off-field business portfolio.
Using the player’s NIL contract, Sure Sports was able to offer 20% of the remaining value of the player’s NIL contract.
RESULT
Sure Sports provided the college athlete with an unsecured line of credit at 9%, allowing the player to have access to funds when needed, and only paying interest on the portion of the funds being utilized.
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